Moly Mines Limited
TSX : MOL
ASX : MOL

Moly Mines Limited

February 26, 2009 11:27 ET

Moly Mines Limited: Iron Ore at Spinifex Ridge

TORONTO, ONTARIO--(Marketwire - Feb. 26, 2009) -

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Moly Mines Limited, (TSX:MOL)(ASX:MOL) is pleased to report the continued success of its iron ore drilling programs at Spinifex Ridge which demonstrate continued high grade Direct Ship Ore (DSO) with low alumina (Al2O3) and phosphorus contaminants.)



Results from the latest drilling includes:

- 29m @ 64% Fe from 23m

- 56m @ 64% Fe from 1m;

- including 32m @ 67% Fe from 2m

- 33m @ 64% Fe from 21m

- 63m @ 60% Fe from surface including;

- 44m @ 62% from15m

- 36m @ 62% Fe from 14m;

- including 23m @ 64% from 26m

- 78m @ 59% Fe from surface;

- including 17m @ 61% Fe and 39m @ 62% Fe from 6 and 39m respectively


Three areas of iron ore mineralization have been identified and named Auton, Dalek and Gallifrey. The results reported in this release relate to drilling of 36 holes for 3,032 metres at Auton and Dalek and are shown in Tables 1 and 2 attached.

The Auton prospect has been shown to extend over an area of 400m x 150m and was drilled using a combination of vertical and angled drill holes on 25m centres on drill lines 50m apart. The drilling has encountered widespread iron mineralisation forming a blanket of varying thickness over much of the prospect with the high grade results mainly attributed to a steeply dipping lense of dominantly hematite-rich mineralisation (Figure 1). Both styles are similar to those of the Shay Gap and Yarrie mines located to the north and north east of Spinifex Ridge.

A further infill RC drill program was recently concluded at the Auton and Dalek prospects and their results are awaited whilst a further RC drilling program will commence early March. The collective results should provide sufficient information to complete a resource estimate for the prospects.

Gallifrey

The maiden drill program was recently completed into the Gallifrey prospect after mapping and rockchip results indicated its potential to add further DSO resources at Spinifex Ridge. Geological logging of these holes identified hematite-rich intervals below the areas of high grade rockchip samples previously reported. Assays are awaited and it is anticipated they will be available shortly.

The drilling covered an area 350m x 150m where surface geological mapping had identified iron mineralization.

To view Figure 1, please visit the following link: http://media3.marketwire.com/docs/molyminesfig1.pdf



Table 1
---------------------------------------------------------------------------
East- North- EOH Inter-
Hole ing ing depth Azi- From To val
Number GDA GDA (m) muth Dip (m) (m) (m)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
SRC246 196850 7687790 120 180 -60 5 12 7
and 23 52 29
---------------------------------------------------------------------------
SRC247 196825 7687800 133 180 -60 52 80 28
including 59 74 15
---------------------------------------------------------------------------
SRCD248 196825 7687750 96.4 180 -60 0 19 19
including 7 16 9
and 47 67 20
and 77 82 5
---------------------------------------------------------------------------
SRCD249 196834 7687757 105.2 180 -60 1 57 56
including 2 34 32
---------------------------------------------------------------------------
SRC250 196800 7687740 80 180 -60 0 16 16
and 21 54 33
---------------------------------------------------------------------------
SRC251 196750 7687725 50 180 -60 1 6 5
---------------------------------------------------------------------------
SRC252A 196750 7687750 72 180 -60 0 63 63
including 15 59 44
---------------------------------------------------------------------------
SRC253A 196600 7687700 100 180 -60 2 7 5
---------------------------------------------------------------------------
SRC254A 196600 7687725 19 180 -60 2 7 5
---------------------------------------------------------------------------
SRC255 196600 7687820 80 180 -60 No significant result
---------------------------------------------------------------------------
SRC256 196640 7687710 61 180 -60 0 2 2
and 5 10 5
---------------------------------------------------------------------------
SRC257 196625 7687750 30 180 -60 Low grade 0 22 22
---------------------------------------------------------------------------
SRC258 196650 7687775 30 180 -60 0 20 20
---------------------------------------------------------------------------
SRC259 196700 7687710 43 180 -60 Low grade 0 9 9
---------------------------------------------------------------------------
SRC260 196700 7687735 120 180 -60 0 8 8
and 21 29 8
---------------------------------------------------------------------------
SRC261 196900 7687775 37 180 -60 No significant result
---------------------------------------------------------------------------
SRC262 196900 7687800 49 180 -60 No significant result
---------------------------------------------------------------------------
SRC263 196945 7687900 50 360 -60 Low grade 0 30 30
including 19 30 11
---------------------------------------------------------------------------
SRC264 196945 7687875 80 360 -60 11 25 14
---------------------------------------------------------------------------
SRC265 196970 7687875 80 360 -60 14 17 3
---------------------------------------------------------------------------
SRC266 196920 7687875 80 360 -60 5 8 3
and 14 50 36
including 26 49 23
---------------------------------------------------------------------------
SRC267 196800 7687775 10 180 -60 Not available
---------------------------------------------------------------------------
SRC268 196800 7687800 122 180 -60 1 12 11
---------------------------------------------------------------------------
SRC269 196725 7687825 50 180 -60 No significant result
---------------------------------------------------------------------------
---------------------------------------------------------------------------


------------------------------------------------------------------------
East- North-
Hole Ing ing Fe SiO2 Al2O3 S P LOI
Number GDA GDA (%) (%) (%) (%) (%) (%)
------------------------------------------------------------------------
------------------------------------------------------------------------
SRC246 196850 7687790 59.31 7.25 3.04 0.02 0.06 4.22
63.54 7.13 0.90 0.01 0.04 0.91
------------------------------------------------------------------------
SRC247 196825 7687800 60.01 11.48 1.32 0.01 0.06 1.12
63.17 8.11 0.98 0.02 0.04 0.48
------------------------------------------------------------------------
SRCD248 196825 7687750 61.11 3.78 3.41 0.04 0.07 4.64
64.67 2.29 2.18 0.03 0.05 2.54
58.90 4.75 1.08 0.01 0.08 9.59
58.48 4.65 0.86 0.01 0.13 10.34
------------------------------------------------------------------------
SRCD249 196834 7687757 63.95 3.30 1.27 0.01 0.05 3.64
66.73 2.12 0.97 0.01 0.03 1.28
------------------------------------------------------------------------
SRC250 196800 7687740 61.48 3.42 2.62 0.02 0.09 5.38
64.42 4.57 1.27 0.01 0.04 1.70
------------------------------------------------------------------------
SRC251 196750 7687725 60.42 7.52 1.05 0.02 0.05 4.77
------------------------------------------------------------------------
SRC252A 196750 7687750 60.42 8.20 1.02 0.01 0.08 3.89
61.58 7.39 0.70 0.01 0.08 3.52
------------------------------------------------------------------------
SRC253A 196600 7687700 56.80 3.55 3.18 0.03 0.14 11.12
------------------------------------------------------------------------
SRC254A 196600 7687725 55.50 4.12 3.57 0.03 0.17 11.78
------------------------------------------------------------------------
SRC255 196600 7687820 No significant result
------------------------------------------------------------------------
SRC256 196640 7687710 57.80 10.69 2.17 0.02 0.09 3.51
56.40 6.60 3.10 0.03 0.13 8.68
------------------------------------------------------------------------
SRC257 196625 7687750 54.14 6.84 3.94 0.04 0.26 10.47
------------------------------------------------------------------------
SRC258 196650 7687775 56.21 9.02 2.20 0.02 0.26 7.21
------------------------------------------------------------------------
SRC259 196700 7687710 52.19 10.47 4.59 0.04 0.07 9.34
------------------------------------------------------------------------
SRC260 196700 7687735 60.94 5.01 2.65 0.02 0.08 4.75
53.89 14.44 2.06 0.02 0.18 5.30
------------------------------------------------------------------------
SRC261 196900 7687775 No significant result
------------------------------------------------------------------------
SRC262 196900 7687800 No significant result
------------------------------------------------------------------------
SRC263 196945 7687900 54.73 10.18 2.34 0.01 0.24 8.42
56.15 6.80 1.82 0.01 0.38 10.08
------------------------------------------------------------------------
SRC264 196945 7687875 61.44 3.89 0.79 0.01 0.20 6.86
------------------------------------------------------------------------
SRC265 196970 7687875 57.90 4.87 1.24 0.01 0.26 10.42
------------------------------------------------------------------------
SRC266 196920 7687875 56.50 11.10 2.89 0.03 0.09 4.53
62.47 4.61 0.96 0.01 0.16 4.60
64.27 2.89 0.74 0.00 0.18 3.96
------------------------------------------------------------------------
SRC267 196800 7687775 Not available
------------------------------------------------------------------------
SRC268 196800 7687800 56.88 16.77 0.37 0.00 0.02 1.32
------------------------------------------------------------------------
SRC269 196725 7687825 No significant result
------------------------------------------------------------------------
------------------------------------------------------------------------
Notes:
1. Previously released handheld XRF results reported on the 18th September
2008
2. Co-ordinate Datum is GDA94 Zone 51
3. Samples assayed using lithium metaborate fusion and XRF at ALSChemex in
Perth
4. Intervals allow 2m internal dilution
5. SRC, SRCD & SRD prefixes denote RC, RC with diamond tail and diamond
drill holes respectively



Table 2
---------------------------------------------------------------------------
East- North- EOH Inter-
Hole ing ing depth Azi- From To val
Number GDA GDA (m) muth Dip (m) (m) (m)
---------------------------------------------------------------------------
---------------------------------------------------------------------------
SRC270 196750 7687825 50 180 -60 0 8 8
---------------------------------------------------------------------------
SRC271 196725 7687850 50 180 -60 Low grade 0 12 12
---------------------------------------------------------------------------
SRC272 196750 7687850 60 80 -60 Low grade 0 19 19
including 14 19 5
---------------------------------------------------------------------------
SRC273 196750 7687785 103 180 -60 82 85 3
---------------------------------------------------------------------------
SRCD274 196700 7687775 105.9 180 -60 0 78 78
including 6 23 17
including 39 78 39
---------------------------------------------------------------------------
SRC275 196650 7687750 166 180 -60 0 24 24
and 29 46 17
including 38 46 8
and 63 71 8
and 127 130 3
---------------------------------------------------------------------------
SRC276 196600 7687750 118 180 -60 No significant result
---------------------------------------------------------------------------
SRC300 197395 7687665 120 180 -60 46 64 18
---------------------------------------------------------------------------
SRC301 197424 7687651 95 90 -60 11 32 21
including 19 23 4
and 54 91 37
including 62 70 8
and 81 91 10
---------------------------------------------------------------------------
SRD105 196773 7687854 187 170 -60 146 159 13
including 151 158 7
and(ii) 149 165 16
including 162 165 3
---------------------------------------------------------------------------
SRD106 196773 7687851 186.2 135 -60 141 154 13
and 156 161 5
and 166 169 3
and 174 176 2
---------------------------------------------------------------------------
SRD107 197468 7687660 93.6 360 -60 Low grade 0 31 31
including 0 16 16
including 26 29 3
---------------------------------------------------------------------------
---------------------------------------------------------------------------


------------------------------------------------------------------------
East- North-
Hole ing ing Fe SiO2 Al2O3 S P LOI
Number GDA GDA (%) (%) (%) (%) (%) (%)
------------------------------------------------------------------------
------------------------------------------------------------------------
SRC270 196750 7687825 62.11 8.59 0.78 0.00 0.04 1.35
------------------------------------------------------------------------
SRC271 196725 7687850 50.55 11.20 4.73 0.05 0.14 10.67
------------------------------------------------------------------------
SRC272 196750 7687850 53.55 12.41 2.71 0.03 0.21 7.29
60.06 8.36 1.01 0.02 0.18 4.12
------------------------------------------------------------------------
SRC273 196750 7687785 57.00 10.61 0.97 0.01 0.14 6.46
------------------------------------------------------------------------
SRCD274 196700 7687775 59.32 6.47 2.93 0.01 0.04 4.01
60.70 6.74 2.03 0.02 0.08 3.84
62.30 4.36 2.35 0.01 0.03 3.77
------------------------------------------------------------------------
SRC275 196650 7687750 56.99 6.46 2.37 0.03 0.14 8.88
58.35 12.01 0.74 0.01 0.10 3.34
61.16 8.21 0.58 0.01 0.09 3.29
57.03 14.18 0.47 0.00 0.12 2.81
56.40 15.72 0.79 0.01 0.06 2.50
------------------------------------------------------------------------
SRC276 196600 7687750 No significant result
------------------------------------------------------------------------
SRC300 197395 7687665 59.42 14.33 0.25 0.00 0.05 0.25
------------------------------------------------------------------------
SRC301 197424 7687651 57.47 15.02 0.53 0.00 0.35 1.09
61.15 10.89 0.32 0.00 0.20 0.55
59.45 14.30 0.21 0.00 0.03 0.28
64.18 7.46 0.21 0.00 0.03 0.27
62.86 9.26 0.26 0.00 0.03 0.38
------------------------------------------------------------------------
SRD105 196773 7687854 59.45 12.03 0.43 0.01 0.08 2.00
63.04 8.00 0.31 0.01 0.05 1.27
53.97 8.88 0.27 0.00 0.04 0.91
61.40 10.85 0.32 0.00 0.04 0.65
------------------------------------------------------------------------
SRD106 196773 7687851 59.56 5.30 0.80 0.00 0.18 7.98
59.12 6.42 0.43 0.01 0.21 7.86
60.93 9.67 1.10 0.01 0.08 1.75
63.90 7.18 0.65 0.00 0.04 0.51
------------------------------------------------------------------------
SRD107 197468 7687660 54.65 17.77 1.17 0.01 0.14 2.23
59.51 11.31 1.23 0.00 0.08 1.91
59.03 10.77 0.83 0.01 0.19 3.20
------------------------------------------------------------------------
------------------------------------------------------------------------
Notes:
1. Co-ordinate Datum is GDA94 Zone 51
2. Samples assayed using lithium metaborate fusion and XRF at ALSChemex in
Perth
3. Intervals allow 2m internal dilution
4. (ii) includes 2 non-consectutive metres of core loss due to cavities
5. SRC, SRCD & SRD prefixes denote RC, RC with diamond tail and diamond
drill holes respectively


These press materials do not constitute an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that will contain detailed information about the company and management, as well as financial statements.

THESE PRESS MATERIALS ARE NOT FOR RELEASE IN THE UNITED STATES.

This news release includes forward-looking statements as that term within the meaning of securities laws of applicable jurisdictions. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are in some cases beyond Moly Mines control. These forward-looking statements include, but are not limited to, all statements other than statements of historical facts contained in this news release, including, without limitation, those regarding Moly Mines future expectations. Readers can identify forward-looking statements by terminology such as aim, anticipate, assume, believe, continue, could, estimate, expect, forecast, intend, may, plan, potential, predict, project, risk, should, will or would and other similar expressions. Risks, uncertainties and other factors may cause Moly Mines actual results, performance, production or achievements to differ materially from those expressed or implied by the forward-looking statements (and from past results, performance or achievements). These factors include the failure to complete and commission the mine facilities, processing plant and related infrastructure in the time frame and within estimated costs currently planned; variations in global demand and price for molybdenum and copper; fluctuations in exchange rates between the U.S. dollar and the Australian dollar; failure to recover the resource and reserve estimates of the Project; the failure of Moly Mines suppliers and service providers to fulfill their obligations under construction, supply and tolling agreements; unforeseen geological, physical or meteorological conditions, natural disasters or cyclones; changes in the regulatory environment, industrial disputes, labor shortages, political and other factors; the inability to obtain additional financing, if required, on commercially suitable terms; and global and regional economic conditions. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information.

"The information in this report that relates to Exploration Results is based on information compiled by Dr Derek Fisher who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Fisher is Managing Director of Moly Mines Limited, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves . Dr. Fisher is also a Qualified Person within the meaning of such term under NI-43-101. Dr Fisher consents to the inclusion in the report of the matters based on his information in the form and context in which it appears."

Contact Information

  • Moly Mines Limited
    Derek Fisher
    Managing Director
    +61 8 94293300
    or
    Moly Mines Limited
    Natalie Frame
    Investor Relations Coordinator
    (416) 777-1801
    Website: www.molymines.com
    Email: info@molymines.com